Germany’s Exports Increase in August Boosts Hopes For a Strong Recovery

German exports increased for the fourth month in a row and more than expected in August, boosting hopes of a strong recovery for Europe’s largest economy in Q3 after the shock of the Corona pandemic earlier this year.

The Federal Statistics Office said exports, adjusted for seasonal factors, rose 2.4% M-o-M after a 4.7% increase in July.

Imports rose 5.8%, after increasing 1.1% the previous month. He added that the trade surplus narrowed to 15.7 billion euros (18.5 billion dollars).

Economists polled by Reuters expected an increase in exports and imports of 1.4% each, while they expected a trade surplus of 18.2 billion euros.

On an annual basis, the Bureau of Statistics said exports to China decreased only 1.1% in August, while exports to the United States were particularly affected by the Corona pandemic, dropping 21.1% and exports to Britain decreased 7.3%.

The German economy shrank by 9.7% in Q2 as household spending, corporate investment and trade collapsed at the height of the pandemic.

Official data released on Tuesday revealed that orders for goods made in Germany rose 4.5% in August, more than expected.